If you are thinking about jewellery company formation in Dubai, then it’s like a step forward to your million-dollar journey. Dubai holds an unmatchable market when it comes to gold and jewellery. This region introduces a wide range of pearls collections of all sizes and that too in the rarest colours.
And the best part is the price of gold here is much cheaper than in a lot of other countries. Well, it’s not only the gold that is at an affordable rate in Dubai, but also other precious stones which are comparatively cost-friendly. But what are the other benefits of starting a jewellery business in Dubai? What is the procedure? Let’s dive in and learn them all.
What are the benefits of jewellery company formation in Dubai/UAE?
Jewellery marketing in Dubai accounted for approximately 12 billion dirhams of revenue in 2022 and is expected to grow even higher in the coming years. So, investing in the jewellery business will surely be a great idea. Here is why.
- Offers high-demanding metal quality that always flourishes without any customer shortage
- Dubai is home to high-net-worth individuals for whom buying precious jewellery is just a piece of cake
- Due to the rules and regulations with rigorous security measures, Dubai is the safest place for the jewellery business
- Commendable benefits of free zones that ensure 100% ownership is another reason to invest in Dubai for maximum profits
- Dubai’s government doesn’t levy any value-added tax on the sale of gold. Instead, there are some exemptions from corporate and income tax.
- There isn’t any time constraint for running a business in Dubai, you can operate your jewellery store 24/7.
- Any jewellery company in Dubai gets 100% security with high-quality surveillance and fire alarms installed in all units.
How to undergo hassle-free Jewellery company formation in Dubai?
1-Go for Jewellery Company Registation
In order to launch a jewellery business in Dubai, you can either register your business in Mainland Dubai or in one of the free zones in the Emirates. Suppose you wish to establish it in a free zone, then there is nothing better than the Gold and Diamond Park Free Zone.
A good thing about registering your company in this zone is the exemption from having a local partner or sponsor. It means you get 100% ownership in your jewellery business.
2- Acquire A Suitable License For Your Jewellery Business
Before you get a license for your jewellery company, it’s essential to choose the channel you will be using for your business formation. Enlisted below are two channels you can actually choose from:
- Dubai Multi Commodities Center(DMCC)
A DMCC License is perfect for you in case you are willing to start a jewellery company in a free zone. The perks of starting a business here are 100% ownership, exemption from taxes and you don’t even require any local sponsor. Moreover, you also get membership in the Dubai Diamond Exchange (DDE).
- Dubai Department of Economic Development(DED)
In case you wish to incorporate a shop in the Gold Souk market and deal with customers directly, then getting a license from DED will be the best option. Additionally, you can set international trade close to Port Rashid with a DED license.
3- Hire Qualified And Professional Staff
Will your jewellery business be able to survive with dumb staff members? Of course not. So, it’s important to hire qualified and professional staff for your business. First of all, you have to hire a professional manager who is experienced enough to handle your business.
Hiring a qualified manager is one of the compulsory requirements of the DED that you need to consider, no matter what.
4-Fulfill all the requirements to Sell Jewellery
There are a few requirements that you have to fulfil in order to sell jewellery inside and outside Dubai. Let’s explore a few of them:
- Use world-class quality material needed for the creation of various jewellery pieces.
- Make sure you are abiding by the EXIM rules and regulations for ensuring the hassle-free trading of your ready-made jewellery. Initially, you need to obtain a customs code number and get all your jewellery passed through the inspection procedure.
Ques 1) Can I earn profits after starting a gold business in Dubai?
Dubai’s gold and jewellery market are proving itself profitable over a long period of time. Investing in this market involves low risk and high returns. So, you can definitely earn profits with a gold business in Dubai.
Ques 2) What should I do to obtain a gold trading license in Dubai?
Obtaining a gold trading license is not as difficult as it seems. Here are a few steps you can follow to get one:
- Choose a company name for your jewellery business
- Apply for your license and complete your license application
- Lastly, apply for the relevant visas
Ques 3) How can I become a gold dealer in Dubai Free Zone?
In order to start a gold trading business in Dubai free zone, you need a capital of at least AED 150000. Moreover, you might also need to pay some rent to Gold Park management along with the deposit of 15% of the annual unit rent that is refundable.
Summing it up:
Incorporating a jewellery business in Dubai can be a hustle-bustle with huge investment. Besides that, you also have to follow some rules and regulations for hassle-free jewellery company formation in Dubai.
We have already shared the basic details in this blog post but you definitely need expert guidance for further detail. Feel free to connect with the business setup consultants at TVG.